Dow Jones - Bear Rally Completing!
I'm not going to get into any highly complicated fundamentals here other than this. Unless something happens next week that surprises investors and the world, this bear market rally is nearing completion.
The stock market is heavily traded based on algorithms and we're sitting at a very important Friday close. We're sitting right at $240 which is a 50% retrace from the proposed wave 3 as drawn.
If I am right, we're going to early this week and maybe even on Monday and start to head down again. This will likely not be met with some hopeful retail investors trying to catch a dip. It's quite possible DIA will bounce up to $245 (or even further... nobody knows for sure). What we do know is this:
- We capped out at ~$270
- We rejected and bounced at $241
- We had a failed rally that lost steam at $263
- We have completely failed and fell to $216. Surprising? Not for me.
- We rallied to where we are now... so what next?
Just a simple fibonacci based on the proposed 1-2 gets us our bounce at the 1.618 and a rally as expected. We really shouldn't move much higher than this otherwise we'll overlap wave 1 which really changes things quite a bit.
Assuming we here, our target (could ptoentially be several weeks or months away) is going to be around the 2.618 from that first 1-2 which lands us at the almighty $200 mark.
Trade safely my friends.
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